Help to Buy consists of two schemes which enable people to buy a property even if they only have 5% of the purchase cost.
More than 48,000 people in total have taken advantage of Help to Buy in the scheme’s first year. The government has released a statement revealing some of the key figures:
• more than 80% of house purchases made using the scheme were made by first-time buyers
• the average price of houses sold was £187,800, which is significantly less than the national average of £265,000
• 94% of Help to Buy purchases were on houses outside of London.
One concern about the scheme is that it will make getting a mortgage too easy, and push house prices up too high – there was a 10% rise from June 2013 to June 2014.
The mortgage guarantee loans are restricted to 4.5 times the borrower’s income to try and keep a natural balance in the market, and also prevent buyers borrowing more than they can afford.
We will keep our clients informed of any developments.
Please contact Sarah Gratton or Jo Ayrton in our Warminster office on 01985 214444, or Sandra Smith in Westbury on 01373 865577 if you would like information about the legal aspects of buying or selling a home.